KwaBhaca, Eastern Cape, 17 October 2024 – The South African National Roads Agency SOC Limited (SANRAL’s) programme to capacitate small, micro and medium enterprises (SMMEs) for meaningful participation in its road infrastructure build programme is on track in the Eastern Cape.
SANRAL provided an update of its interventions aimed at small enterprise development during an SMME workshop it recently hosted in KwaBhaca. Held at the Umzimvubu Local Municipality town hall, the workshop was attended by targeted enterprises including emerging contractors, suppliers and service providers 2 from KwaBhaca and surrounding areas who are predominantly new players in the construction sector.
“SANRAL has created this platform for targeted enterprises to ensure that we create an enabling environment for your participation in opportunities created through our road construction projects,” said Andile Duka, SANRAL’s Regional Stakeholder Coordinator.
SANRAL is implementing a R1.2 billion rehabilitation and widening of the N2 between KwaBhaca and Ngcweleni River near eMaxesibeni, which has been under construction since mid-2023.
This project also entails constructing a pedestrian bridge at Phakade (known as Bizana turn) between Ngcweleni River and Brook’s Nek, construction of three new bridges, three new major culverts, pedestrian walkways and community service roads.
At least 30% of the contract value (R360 million) has been ringfenced for subcontracting SMMEs on the project, while 600 job opportunities are expected to be created.
“SANRAL has undertaken to host these workshops to ensure it achieves its transformation imperatives,” said Thandile Makwabe, SANRAL’s Acting Transformation Manager.
“Many SMMEs, particularly the new players, are not familiar with our supply chain and procurement processes. Thus, workshops of this nature are crucial to help you navigate the sector in order to meaningfully benefit from opportunities created by SANRAL projects,” he explained.
Makwabe stressed that SANRAL’s transformation unit had been tasked with creating a conducive environment for participation by SMMEs and that the impact of its programmes were bearing fruit.
“It is very easy to participate in SANRAL projects because we have ensured that we remove any nuances that might be barriers to entry. As SMMEs, you are only required to be compliant in terms of tax, registration on the Central Supplier Database and with the Construction Industry Development Board (CIBD),” added Makwabe.
He outlined interventions undertaken by SANRAL towards uplifting small enterprise development including skills development, training and mentorship. The roads agency was working with sector partners to assist emerging contractors with access to construction plant, funding and markets.
“Each of our projects have a training budget intended to provide support to the development of our SMMEs. This is over and above the pre-tender training SANRAL is providing across the country. Furthermore, we have community development projects, 3 which entail practical and classroom training of SMMEs. This programme is implemented prior to the construction of community access roads by local SMMEs,” said Makwabe.
The Department of Labour and Employment’s Thembisa Macakati and Asa Matshoba shared a presentation on construction industry standards related to the construction sector, stressing that safety compliance was a critical component given that construction was a high-risk sector.
Mvano Jakalase from the Small Enterprise Development Agency (SEDA) spoke of its non-financial programmes designed to capacitate emerging enterprises including business assessment, mentorship and coaching as well as compliance and training under their SEDA Start and Build programmes.
He said the only funding provided by SEDA was for cooperatives that have been
operating for at least one year.
The SMMEs raised access to funding as a prevailing barrier to entry, particularly for
grade 1 and 2 CEs.
The municipality’s Local Economic Development (LED) Manager, Tembalethu Matola, said the municipality was committed to working with entities such as SANRAL to leverage opportunities for local SMMEs and contractors.
To date, SANRAL’s N2 KwaBhaca to Ngcweleni River project has created 29 subcontracting opportunities for SMMEs with a total budget spend of R57.5 million to date.